That first home - not so far away now?

The recent announcements around the Kiwibuild Scheme review look like creating a wonderful opportunity for some who have been saving hard. But are there some other things that we should be aware of?

Well for one thing, interest rates are at record lows and many are wondering why this hasn’t created a surge in real estate activity.

But there have been some subtle changes that have largely gone unnoticed yet. Most lenders have made changes to the way they assess an applicants’ ability to service a loan. This generally translates into a reduction in the margin that is added to the market interest rates by the lender. So, put in simple terms we now don’t need as much income to get that “pass mark” and we might just be able to buy that first home a little sooner.

Of course, with lower interest rates we can concentrate on getting our loan paid off a little quicker, or just use the lower loan instalment to provide for those other spending items that are important.

If you’re finding all the talk around deposit requirements, Homestart Grants, Welcome Home Loans or bank lending requirements confusing, give us a call at Thompson McNeill.

Call us on (03) 281 8605 or email us:

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